Harini Mittal
Institutional context impacts the innovation trajectory of an economy. Impact of institutional voids in an emerging economy on firm level innovation strategies, and output is a less researched topic. Using India as a case study, this paper presents a qualitative assessment of the impact of institutional context in the emerging economy on innovation strategies and consequent outputs of Indian private firms across various firm sizes, and ages. The paper finds that in India, most innovations are imitative in nature, and/or driven by customer requirements, and/or international quality norms. “New-to-the-world” innovations are scarce and are mostly driven by MNCs, government institutions, and to some extent large Indian firms. The paper concludes that in India, large firms are more innovative because of their resilience, and the internal systems and capabilities that can overcome voids, and exploit opportunities. In start-up firms and SMEs, the fast-paced transitions create unequal opportunities for innovation to different sizes and ages of firms.
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